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LATEST NEWS UPDATES | The economics of Delhi's odd-even policy -Roshan Kishore

The economics of Delhi's odd-even policy -Roshan Kishore

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published Published on Jan 24, 2016   modified Modified on Jan 24, 2016
-Livemint.com

Despite its positive features, the scheme may not be adequate to tackle pollution in the national capital

Delhi’s unique experiment of having odd-even numbered vehicles off the roads on alternate days to combat high levels of air pollution has ignited a debate on the merits and efficacy of the policy.

A recent Indian Express article, co-authored by US-based scholars Michael Greenstone, Santosh Harish, Anant Sudarshan and Rohini Pande, argued that the odd-even policy did help in reducing pollution levels.

The authors used pollution data from Delhi and areas around Delhi in the National Capital Region, where the odd-even pilot scheme wasn’t in force, to show that “particulates pollution declined by 18 per cent” due to the scheme. The impact was greater during the day (the scheme was operational between 8am and 8pm) than during the night, they found. However, they cautioned that the scheme may not be enough to bring down pollution levels meaningfully over the long run.

One of the biggest criticisms of the odd-even scheme was rooted in the fact that it interfered with people’s freedom to choose their mode of transport. Economists typically assume that people are rational enough to decide what is good for themselves, and nudges, in the form of inducements rather than blanket bans, are enough to get them to behave in a fashion that leads to desirable social outcomes. However, a discussion paper of the economics department of the University of Oxford published last year shows that there is good reason to believe that individuals, when left free, do not make the best commuting choices.

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Livemint.com, 24 January, 2016, http://mintonsunday.livemint.com/news/the-economics-of-delhis-odd-even-policy/2.4.3792806252.html


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